Comments on: Reader Stories: My strange love of stocks or: How I learned to stop worrying and love the Buffett http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Wed, 19 Jun 2013 03:44:32 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Divyesh Dave http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3128062 Divyesh Dave Mon, 03 Dec 2012 00:26:45 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3128062 There is this website called www.gurufocus.com that I use to find out what Warren Buffett and other value investors have been buying. There is this website called http://www.gurufocus.com that I use to find out what Warren Buffett and other value investors have been buying.

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]]> By: Half Way to Debt Free http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3125722 Half Way to Debt Free Fri, 30 Nov 2012 17:36:19 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3125722 Greetings. Thanks for a really readable and accessible article that with much needed tips and strategy advice for an investment abcedarian, such as myself. Citing the books you found useful was a great bonus as well. As other commenters have noted, I would really appreciate more of these types of articles on GRS. Greetings. Thanks for a really readable and accessible article that with much needed tips and strategy advice for an investment abcedarian, such as myself. Citing the books you found useful was a great bonus as well. As other commenters have noted, I would really appreciate more of these types of articles on GRS.

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]]> By: Aram Durphy http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3122412 Aram Durphy Wed, 28 Nov 2012 18:54:49 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3122412 Good work on getting putting together a cogent investment philosophy. The reason that small investors using a diversified value approach can outperform big Wall Street mutual funds is that the mutual funds often don't use this approach. Large institutional investors will often focus on short-term investment periods, actively trade, look to add stocks that have already run up in price, and charge exorbitant fees. There are several studies that show that buy-and-hold investors with diversified portfolios tend to outperform active traders. Good work on getting putting together a cogent investment philosophy. The reason that small investors using a diversified value approach can outperform big Wall Street mutual funds is that the mutual funds often don’t use this approach. Large institutional investors will often focus on short-term investment periods, actively trade, look to add stocks that have already run up in price, and charge exorbitant fees. There are several studies that show that buy-and-hold investors with diversified portfolios tend to outperform active traders.

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]]> By: Malcom http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3121832 Malcom Wed, 28 Nov 2012 13:31:37 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3121832 Thank you for responding. There was only one reply. My computure does not show the reply anymore. Thank you for responding.

There was only one reply. My computure does not show the reply anymore.

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]]> By: Tracy (the other one) http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3121812 Tracy (the other one) Wed, 28 Nov 2012 13:28:15 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3121812 Definitely. Research has demonstrated that even the fund managers at the giant investment firms (who are supposedly experts at researching and picking stocks, timing markets, etc.) only periodically outperform the market average, and when they do they then become more statistically likely to then have a string of 'bad' picks (reversion to the mean). Which is exactly what you'd expect to see if the market was efficient. If you want to be even more horrified than usual at the insane arrogance of Wall Streeters, there is a great chapter in Daniel Kahneman's "Thinking, Fast and Slow" that shows how these guys convince themselves that they are actually worth their ginormous bonuses, even though data shows that over the long term they do no better picking stocks than dart-throwing monkees would. However, I think you could hypothetically score big in instances where the market is not efficient, or is rigged (which big firms are now able to do sometimes) or is otherwise 'acting irrational', as in bubbles, etc., as long as you can keep yourself emotionally dis-invested and clearly identify what is happening. Definitely. Research has demonstrated that even the fund managers at the giant investment firms (who are supposedly experts at researching and picking stocks, timing markets, etc.) only periodically outperform the market average, and when they do they then become more statistically likely to then have a string of ‘bad’ picks (reversion to the mean). Which is exactly what you’d expect to see if the market was efficient. If you want to be even more horrified than usual at the insane arrogance of Wall Streeters, there is a great chapter in Daniel Kahneman’s “Thinking, Fast and Slow” that shows how these guys convince themselves that they are actually worth their ginormous bonuses, even though data shows that over the long term they do no better picking stocks than dart-throwing monkees would.

However, I think you could hypothetically score big in instances where the market is not efficient, or is rigged (which big firms are now able to do sometimes) or is otherwise ‘acting irrational’, as in bubbles, etc., as long as you can keep yourself emotionally dis-invested and clearly identify what is happening.

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]]> By: Jeff http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3121232 Jeff Wed, 28 Nov 2012 03:58:06 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3121232 I'm curious how you are able to evaluate the "fair value" of a company compared to the market price better than the thousands of other (many institutional) investors out there. Reading 4 or 5 newspapers a day does not make you better informed than the vast majority of those making decisions that affect the price of a stock on a given day. I suggest that everyone who is considering this type of investing read up a bit on the efficient market hypothesis and understand how incredibly risky this type of investing is compared to a well-diversified index approach. Always remember that when you buy a stock, there is always someone else (probably better informed than you) willing to sell the stock at the same price. I’m curious how you are able to evaluate the “fair value” of a company compared to the market price better than the thousands of other (many institutional) investors out there. Reading 4 or 5 newspapers a day does not make you better informed than the vast majority of those making decisions that affect the price of a stock on a given day.

I suggest that everyone who is considering this type of investing read up a bit on the efficient market hypothesis and understand how incredibly risky this type of investing is compared to a well-diversified index approach.

Always remember that when you buy a stock, there is always someone else (probably better informed than you) willing to sell the stock at the same price.

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]]> By: Angela http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3120602 Angela Tue, 27 Nov 2012 20:32:35 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3120602 Loved this article! This is the first post I've read in quite a while that had real financial substance. Personal finance is a tricky topic because readers are all at such different places on the road to financial independence. I've felt that GRS has really started catering to the "newbies" with very basic posts about frugality and basic money management. It's a nice change of pace to see a post for those of us who are further down the path. If anyone can recommend other blogs that provide more substantive articles like this one, I'd love to hear your suggestions. Loved this article! This is the first post I’ve read in quite a while that had real financial substance. Personal finance is a tricky topic because readers are all at such different places on the road to financial independence. I’ve felt that GRS has really started catering to the “newbies” with very basic posts about frugality and basic money management. It’s a nice change of pace to see a post for those of us who are further down the path.

If anyone can recommend other blogs that provide more substantive articles like this one, I’d love to hear your suggestions.

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]]> By: KSR http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3120582 KSR Tue, 27 Nov 2012 20:23:18 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3120582 I'm glad you followed up with that point because that is...the point. Getting in at the 2009 low doesn't warrant a claim to success, just a "good for you" since a lot of people didn't even see it coming and just kept dollar cost averaging-- and still don't even know what's going on most of the time while they ride the wave. What an active investor is doing right here and right now is the true measure of investor grit--not what you did back in the winner winner chicken dinner year of 2009. I do think the dividend players are in bubble territory as well as the bond bugs. I do think the cliff matters. I do think that a multitude of political and economic factors, that are all in play right now, are making it a very difficult game for even a good investor and--- dangerous even. I've been out and back in waiting because I just don't smell the fear or feel the greed of others as strongly as that of my own yet. I’m glad you followed up with that point because that is…the point. Getting in at the 2009 low doesn’t warrant a claim to success, just a “good for you” since a lot of people didn’t even see it coming and just kept dollar cost averaging– and still don’t even know what’s going on most of the time while they ride the wave. What an active investor is doing right here and right now is the true measure of investor grit–not what you did back in the winner winner chicken dinner year of 2009. I do think the dividend players are in bubble territory as well as the bond bugs. I do think the cliff matters. I do think that a multitude of political and economic factors, that are all in play right now, are making it a very difficult game for even a good investor and— dangerous even. I’ve been out and back in waiting because I just don’t smell the fear or feel the greed of others as strongly as that of my own yet.

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]]> By: Ellen Cannon http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3120012 Ellen Cannon Tue, 27 Nov 2012 15:25:37 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3120012 I see El Nerdo's reply to your comment. Was there a second reply? I see El Nerdo’s reply to your comment. Was there a second reply?

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]]> By: Tom http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3119982 Tom Tue, 27 Nov 2012 14:59:16 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3119982 While I think you make a good point, it is not impossible to have lost money on dividend-paying stocks since 2009. A quick stock screen of companies with a negative 3 year total return and a yield greater than 1% returns 339 companies, 133 of those companies are over a billion in market cap. While I think you make a good point, it is not impossible to have lost money on dividend-paying stocks since 2009. A quick stock screen of companies with a negative 3 year total return and a yield greater than 1% returns 339 companies, 133 of those companies are over a billion in market cap.

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]]> By: Malcom http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3119962 Malcom Tue, 27 Nov 2012 14:55:03 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3119962 Why was El Nerdo's reply and my sur reply removed from the blog. I understand that only statements offensive statements would be removed. I didn't think our statements were offensive. I would like to know what what offensive about these statements for the future. Why was El Nerdo’s reply and my sur reply removed from the blog.

I understand that only statements offensive statements would be removed. I didn’t think our statements were offensive. I would like to know what what offensive about these statements for the future.

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]]> By: Matt at Healthy N' Wealthy http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118832 Matt at Healthy N' Wealthy Mon, 26 Nov 2012 22:07:37 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118832 To be specific, "dollar cost average" means you put the same amount of money into the fund each month (or year or quarter or whatever). That way, you're buying less when the market is up, and more when it is down. For example, if you buy $100 worth of a fund when it is valued at $1 a share, you buy 100 shares that month. If the fund drops in value the next month to 50 cents a share, and you buy $100 worth again, you buy 200 shares that month. If it goes up to $2 the next month, and you again buy $100 worth, then you buy 50 shares that month. To be specific, “dollar cost average” means you put the same amount of money into the fund each month (or year or quarter or whatever). That way, you’re buying less when the market is up, and more when it is down.

For example, if you buy $100 worth of a fund when it is valued at $1 a share, you buy 100 shares that month. If the fund drops in value the next month to 50 cents a share, and you buy $100 worth again, you buy 200 shares that month. If it goes up to $2 the next month, and you again buy $100 worth, then you buy 50 shares that month.

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]]> By: Luke http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118592 Luke Mon, 26 Nov 2012 19:21:44 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118592 You're quite welcome. Stay the course, and remember the goal is not to outperform the market. But rather to NOT underperform it. You’re quite welcome. Stay the course, and remember the goal is not to outperform the market. But rather to NOT underperform it.

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]]> By: Luke http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118572 Luke Mon, 26 Nov 2012 19:16:19 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118572 Yes, this is exactly what it means. And you're right that you won't "hit the jackpot" with index funds but you will get the market return, which is, oddly enough, better than the average active investor gets. Again, it's not for everybody. It's not an exciting strategy - the highs aren't as high and the lows aren't as low - but my goal is financial independence, not mountains of cash. Yes, this is exactly what it means. And you’re right that you won’t “hit the jackpot” with index funds but you will get the market return, which is, oddly enough, better than the average active investor gets. Again, it’s not for everybody. It’s not an exciting strategy – the highs aren’t as high and the lows aren’t as low – but my goal is financial independence, not mountains of cash.

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]]> By: Regan http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118422 Regan Mon, 26 Nov 2012 17:54:31 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118422 It means that he/she constantly put money into indecies that track the market it is supposed to represent. An example is VTSMX which tracks the entire US stock market. It is great because it is so diversifed and you get the "average" return. You will never get rich from an index fund like this, but with very low expense ratios it performs better than the "average" actively managed fund. It means that he/she constantly put money into indecies that track the market it is supposed to represent. An example is VTSMX which tracks the entire US stock market. It is great because it is so diversifed and you get the “average” return. You will never get rich from an index fund like this, but with very low expense ratios it performs better than the “average” actively managed fund.

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]]> By: William @ Drop Dead Money http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118372 William @ Drop Dead Money Mon, 26 Nov 2012 16:41:54 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118372 Great article! Thanks aso for that SEC resource; I wasn't aware of it either. Kudos on your decision to take charge of your own investing. It always involves an element of trepidation, but if you follow sound rules (like growing dividends) your long term future usually ends up better than with more passive strategies. And, as in most things in life, the more work you put into it, the higher your reward. And I agree with Marianne above: bank "managed" funds are one of the worst travesties on the financial landscape. Great article! Thanks aso for that SEC resource; I wasn’t aware of it either.

Kudos on your decision to take charge of your own investing. It always involves an element of trepidation, but if you follow sound rules (like growing dividends) your long term future usually ends up better than with more passive strategies. And, as in most things in life, the more work you put into it, the higher your reward.

And I agree with Marianne above: bank “managed” funds are one of the worst travesties on the financial landscape.

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]]> By: Matt at Healthy N' Wealthy http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118362 Matt at Healthy N' Wealthy Mon, 26 Nov 2012 16:23:05 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118362 Great article. Thanks for laying out the basics. I try to invest the same way (not successful yet). I love all the ideas behind analyzing a company: ROE, cash flow, debt, etc. One caveat though: some of your success is likely due to good timing. The market bottomed in 2009. Almost any US equity investment since then has done exceptionally well. So, I'm not sure if you should conclude that you have an eye for "Buffett stocks," though it sounds like you might. You may have a better eye for when the market is hitting bottom. The reading suggestions are great, and I would also recommend "Why Stocks Go Up and Down" by Pike, especially for beginners (read it before Graham/Fisher - they're intense for newbs). Great article. Thanks for laying out the basics. I try to invest the same way (not successful yet). I love all the ideas behind analyzing a company: ROE, cash flow, debt, etc. One caveat though: some of your success is likely due to good timing. The market bottomed in 2009. Almost any US equity investment since then has done exceptionally well. So, I’m not sure if you should conclude that you have an eye for “Buffett stocks,” though it sounds like you might. You may have a better eye for when the market is hitting bottom.

The reading suggestions are great, and I would also recommend “Why Stocks Go Up and Down” by Pike, especially for beginners (read it before Graham/Fisher – they’re intense for newbs).

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]]> By: R Upshaw http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118332 R Upshaw Mon, 26 Nov 2012 16:12:44 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118332 Rick, I enjoyed reading your story -- thanks for sharing. Rick, I enjoyed reading your story — thanks for sharing.

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]]> By: Misesian http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118232 Misesian Mon, 26 Nov 2012 15:04:36 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118232 I have all three of those books (although I haven't been able to plow all the way through Security Analysis) and I would recommend two more: Seth Klarman's out-of-print classic Margin of Safety and Jeremy Siegel's The Future for Investors. Do a Google search and you can find a pdf of Margin of Safety. (Or buy it used for about $900) Klarman's book is an argument for Graham-Dodd/Buffett-style value investing. Siegel's makes a compelling case for strong brands and good dividends. He also broke down the S&P 500 into asset categories (i.e. Industrials, Energy, Technology, Consumer Discretionary, Telco, etc) and found that only three industries did better than the index as a whole: health care, energy and consumer staples. That makes sense because they are the 3 things that most of us simply aren't going to go without. I have biased my own portfolio in that direction. I have all three of those books (although I haven’t been able to plow all the way through Security Analysis) and I would recommend two more: Seth Klarman’s out-of-print classic Margin of Safety and Jeremy Siegel’s The Future for Investors. Do a Google search and you can find a pdf of Margin of Safety. (Or buy it used for about $900)

Klarman’s book is an argument for Graham-Dodd/Buffett-style value investing. Siegel’s makes a compelling case for strong brands and good dividends. He also broke down the S&P 500 into asset categories (i.e. Industrials, Energy, Technology, Consumer Discretionary, Telco, etc) and found that only three industries did better than the index as a whole: health care, energy and consumer staples. That makes sense because they are the 3 things that most of us simply aren’t going to go without. I have biased my own portfolio in that direction.

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]]> By: Malcom http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3118172 Malcom Mon, 26 Nov 2012 14:32:34 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3118172 I didn't mean the specific article or topic. I was generally referring to the overal appraoch of articles prior to JD taking a true back seat to this website. Your articles are one of the reasons that I still read this blog. More and more I find myself not finishing an article. The site has really changed and not for the better unfortunately. I didn’t mean the specific article or topic. I was generally referring to the overal appraoch of articles prior to JD taking a true back seat to this website.

Your articles are one of the reasons that I still read this blog.

More and more I find myself not finishing an article. The site has really changed and not for the better unfortunately.

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]]> By: Lewis Saka http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117882 Lewis Saka Mon, 26 Nov 2012 09:31:31 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117882 The Buffett Way is the only way! Everyone else is just lying The Buffett Way is the only way! Everyone else is just lying

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]]> By: Marianne http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117592 Marianne Mon, 26 Nov 2012 03:06:36 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117592 This is great. My father did very well with individual stocks and refused to buy mutual funds because he hated paying a fund manager. Though the bull market returns of the 1990s made him look smarter than he probably was, he did end up leaving my mother with more passive income than she could spend when he passed away in 2000, which was quite an achievement. He did all his research at the public library. The librarians loved him because he provided them the the chance to use all their training to help him get information on different companies and also the municipal bonds that were a good deal back then. Years later my mom had her investments at one of the "financial advising" subsidiaries of a major bank. What a scam. They put it all into their own mutual funds, which have fees to their managers, after charging her a fee themselves for "managing" her investments. I'm not opposed to mutual funds, by the way, just the way my mother's assets were handled. This is great. My father did very well with individual stocks and refused to buy mutual funds because he hated paying a fund manager. Though the bull market returns of the 1990s made him look smarter than he probably was, he did end up leaving my mother with more passive income than she could spend when he passed away in 2000, which was quite an achievement. He did all his research at the public library. The librarians loved him because he provided them the the chance to use all their training to help him get information on different companies and also the municipal bonds that were a good deal back then.
Years later my mom had her investments at one of the “financial advising” subsidiaries of a major bank. What a scam. They put it all into their own mutual funds, which have fees to their managers, after charging her a fee themselves for “managing” her investments.
I’m not opposed to mutual funds, by the way, just the way my mother’s assets were handled.

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]]> By: Jacq http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117492 Jacq Mon, 26 Nov 2012 00:59:47 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117492 Ksr just waking people up to the fact that there's something out there besides indices and that the market moves up - and down - is a good thing. Baby steps. Also, this blog is totally messed up on firefox. I keep getting internal errors on links. Ksr just waking people up to the fact that there’s something out there besides indices and that the market moves up – and down – is a good thing. Baby steps.

Also, this blog is totally messed up on firefox. I keep getting internal errors on links.

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]]> By: El Nerdo http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117472 El Nerdo Mon, 26 Nov 2012 00:52:08 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117472 @ Malcolm-- I don't remember ever reading anything like this while trolling through the archives (and I've looked) but I'm definitely enjoying this article regardless of whether paradise was actually lost or not. This is a great article for me. @ Malcolm– I don’t remember ever reading anything like this while trolling through the archives (and I’ve looked) but I’m definitely enjoying this article regardless of whether paradise was actually lost or not. This is a great article for me.

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]]> By: Magnolia http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117442 Magnolia Sun, 25 Nov 2012 22:55:32 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117442 What does that mean, "dollar-cost average into broadly diversified index funds"? What does that mean, “dollar-cost average into broadly diversified index funds”?

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]]> By: KSR http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117352 KSR Sun, 25 Nov 2012 20:36:50 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117352 I want to preface this comment with congratulations since it is not my intent to critique or in anyway seem cynical. But, 2009 was the super bowl, the worlds fair, a black jack table stacked with only a single deck. It was the beginning of awesome for those prepared, in waiting, and equipped--the disclaimer of myself included. Those already in—experienced devastating losses and needed to rebuild. Those in wait or just getting in had nothing or no way to lose. Nearly a decade of super steroid wealth was destructed in a virtual instant of a popping bubble, leaving the historical opportunity for an event that posed nowhere but up. “Be fearful when others are greedy and greedy when others are fearful.” No truer words comply to the rules and world of “the street.” I want to preface this comment with congratulations since it is not my intent to critique or in anyway seem cynical. But, 2009 was the super bowl, the worlds fair, a black jack table stacked with only a single deck. It was the beginning of awesome for those prepared, in waiting, and equipped–the disclaimer of myself included. Those already in—experienced devastating losses and needed to rebuild. Those in wait or just getting in had nothing or no way to lose. Nearly a decade of super steroid wealth was destructed in a virtual instant of a popping bubble, leaving the historical opportunity for an event that posed nowhere but up.
“Be fearful when others are greedy and greedy when others are fearful.” No truer words comply to the rules and world of “the street.”

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]]> By: Babs http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117322 Babs Sun, 25 Nov 2012 19:35:45 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117322 Dude! Thanks! I am going to print that out and tape it to my desk! That is what I strive to do. Mostly with success. This is a concise description that I need to gaze at every once in a while to remind me to stay the course. Dude! Thanks! I am going to print that out and tape it to my desk! That is what I strive to do. Mostly with success. This is a concise description that I need to gaze at every once in a while to remind me to stay the course.

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]]> By: Elizabeth http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117282 Elizabeth Sun, 25 Nov 2012 17:52:38 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117282 Just what I needed- some resources to get me started as I learn more about investing! I found this post really useful, and hope GRS will have more informative articles like this in the future. Just what I needed- some resources to get me started as I learn more about investing! I found this post really useful, and hope GRS will have more informative articles like this in the future.

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]]> By: Elizabeth http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117272 Elizabeth Sun, 25 Nov 2012 17:49:23 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117272 Oddly enough, I had the opposite reaction to the "resources" part -- I get annoyed with articles where someone is talking about their business, investments, etc, and not acknowledging the spouse with the steady income or who runs the household/raises the kids (or both) that makes a lot of it possible. It was nice to see some say up front that his wife's steady job is valuable and was part of the reason he was able to do what he did. I did notice the post went back and forth between "I" and "we" so it would have been interesting to hear more about about her role in all of this -- but then again there's only so much room in an article... Oddly enough, I had the opposite reaction to the “resources” part — I get annoyed with articles where someone is talking about their business, investments, etc, and not acknowledging the spouse with the steady income or who runs the household/raises the kids (or both) that makes a lot of it possible. It was nice to see some say up front that his wife’s steady job is valuable and was part of the reason he was able to do what he did.

I did notice the post went back and forth between “I” and “we” so it would have been interesting to hear more about about her role in all of this — but then again there’s only so much room in an article…

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]]> By: Student Loans Worked Out http://www.getrichslowly.org/blog/2012/11/25/reader-stories-my-strange-love-of-stocks-or-how-i-learned-to-stop-worrying-and-love-the-buffett/comment-page-1/#comment-3117202 Student Loans Worked Out Sun, 25 Nov 2012 16:52:40 +0000 http://www.getrichslowly.org/blog/?p=153782#comment-3117202 Good article, thanks, Rick. Very solid principles, someone like myself certainly benefits from being reminded/pointed in the right direction. Would you be willing to share what companies you are invested in? Good article, thanks, Rick. Very solid principles, someone like myself certainly benefits from being reminded/pointed in the right direction. Would you be willing to share what companies you are invested in?

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